You are introducing a new product to the market; in fact,you are first with this new product to the marketplace.In developing your pricing strategy,it was decided that the price of the product should be at the maximum the market would bear.This is an example of what type of pricing strategy
A) Product-quality leadership
B) Market-skimming pricing
C) Market-penetration pricing
D) Going-rate pricing
E) Prestige pricing

Question

Quizplus · Accepted Answer

Market-skimming pricing involves setting a high price for a new product in order to maximize profits while the product is still unique and there is little competition. Since this product is the first of its kind in the market, it makes sense to use market-skimming pricing strategy and set the maximum price the market is willing to pay for the product.

You Are Introducing a New Product to the Market; in Fact,you